This study explores the moderating effects of group values on the relationship between group faultlines and performance. Faultlines occur when group members align along two or more different demographic characteristics causing a group to split into homogeneous subgroups (adapted from Lau and Murnighan, 1998). We theorize and empirically examine three group values variables: career-, change-, and task-specificity. Analyses are performed on 81 work groups from a Fortune 500 information processing firm. Two levels of performance are considered in connection with group faultlines: individual performance (performance ratings) and group performance (bonuses and stock options). Our results provide support for our model of group values, faultiness and performance.